Comex Gold (GC)

No change in Gold's outlook. Rebound from 1155.6 is merely a correction to fall from 1266.5. Hence, even though another rise cannot be ruled out, we'll continue to focus on reversal signal inside 1224.1/1266.5 resistance zone. sustained trading below 4 hours 55 EMA (now at 1221.8) will be an important signal of topping and will turn bias back to the downside for 1192 support for confirmation. Break will target another low below 1155.6.

In the bigger picture, while the rebound from 1155.6 is strong, there is no change in our bearish view. That is, rally from 1044.5 should have completed at 1266.5. More importantly, whole medium term rise from 681 should have finished with five waves up too, on bearish divergence condition in daily MACD. Whole fall from 1266.5 is expected to resume sooner or later to 1044.5 cluster support (38.2% retracement of 681 to 1266.5 at 1042.8) at least. After all, we'll stay medium term bearish in gold as long as 1266.5 resistance holds.

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